CEVA hikes quarterly revenue 32pc to record US$118.3 million

DUTCH global forwarder CEVA posted a 26 per cent year-on-year increase in pre-tax third quarter profit to EUR86 million (US$118.3 million) drawn on record revenues of EUR1.82 billion, an increase of 32 per cent.

"I am pleased with the strong performance. Actions we have taken and ongoing focus on contract logistics profitability gives us confidence that the full year will be in line with expectations," said John CEVA chief executive Pattullo, when announcing the results at Hoofddorp, near Amsterdam.

Freight management revenues continued to grow in line with expectations and have now returned to pre-2008 levels. Contract logistics revenue continued to show growth, even with the seasonal holiday period during the quarter, said the company statement.

"Against the background of strong revenue increases, we retained our relentless focus on working capital. As a result, the increase in working capital was only EUR5 million sequentially at EUR62 million (Q2: EUR57 million).

Profits were driven by success in reversing the previously reported freight management margin impacts and the ongoing focus on contract logistics profitability, said the company.

"We have seen a robust performance across all regions. The Americas recorded a particularly strong quarter with revenue and EBITDA showing year-on-year increases of 37 per cent and 20 per cent respectively. This reflects our recent focus on improving performance in this region. The SEMEA [Southern Europe Middle East and Africa] also performed well as a result of the impact of new business, including a EUR60 million per annum retail contract with Migros in Turkey, which started to deliver profit in the quarter," the statement said.

Revenue was driven by growth in the consumer and retail sectors and continued improvement in the automotive market. New contract wins of note include Wales & West Utilities in the UK, Daikin in Spain, Rui Star in South Africa, Honda in Italy and Koctas in Turkey, added to the good news, the company said.

The company said it had made provision to pay the US$4.5 million fine levied by the US Justice Department for CEVA's anti-competitive activity, but as the provision was made in 2009, it had no impact on 2010's results.

CEVA Logistics operates in 170 countries and has more than 46,000 employees. In 2009, the group reported revenues of EUR5.5 billion.
(Source:www.schednet.com)